Overview of Methodological Trends of the Last Decade in Strategic Management Research

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1 Available online at Procedia Social and Behavioral Sciences 24 (2011) th International Strategic Management Conference Paris, France June 29- July 2, 2011 Overview of Methodological Trends of the Last Decade in Strategic Management Research Ramazan Uygun a *, Emel Altın b aresearch Assistant, Biga Economics and Administrative Faculty, ÇOMU,17200,Çanakkale,Turkey bphd Candidate, Biga Economics and Administrative Faculty, ÇOMU,17200,Çanakkale,Turkey Abstract The main purpose of this article is to present existing and new research strategies and methods in the last decade of strategic management literature. We first examined 137 research articles in Strategic Management Journal (SMJ) from 2009 to 2011 in terms of four key criteria that lie on the methodology dimensions such as research topics, data collection and analysis methods and contributions to literature. Then to determine methodological trends, we compared findings of our content analysis and of review article - Ketchen et. al. (2008) - which includes content analysis, results from 2000 to We choose SMJ for examination; because it is an excellent source for documenting basic methodological trends in Strategic Management field. Our research question is that: What are the new developments in the methodology of strategic management area in consideration of these four key criteria in the last decade? The contribution of this study is adding a holistic overview of methodological trends in strategic management to small research stream that critiques only one side of the strategic management research. As a result, performance-related, organization theory and behavior, competitive advantage and value/knowledge creation have become more frequently discussed topics through longitudinal data obtained from archival sources. Therefore, event history analysis has gained importance near regression methods and statistical analysis Published by Elsevier Ltd. Open access under CC BY-NC-ND license Published by Elsevier Ltd. Selection and/or peer-review under responsibility 7 th International Selection and/or peer-review under responsibility of 7th International Strategic Management Conference Strategic Management Conference Key Words: strategic management; research design; strategic management journal; content analysis 1. Introduction The roots of strategic management research can be traced at least to the early 1960s, the field s prominence grew dramatically following the publication of Schendel and Hofer (1979) and the emergence of the Strategic Management Journal (SMJ) in 1980 [15]. There are average 4 or 5 research articles per issue and in total there are 13 issues in each year in SMJ. In addition, there are recommend papers and researches notes which link and create communication between researchers. Moreover, sometimes a special issue may only focus making contribution to a special literature such as temporary competitive advantage in Volume 31, Issue 13. The current issue published in SMJ is Volume 32 and Issue 5. The journal publishes original material concerned with all aspects of strategic management and it is devoted to the improvement and further *Corresponding author Tel.: fax: address: kahramanuygun@comu.edu.tr Published by Elsevier Ltd. Open access under CC BY-NC-ND license. Selection and/or peer-review under responsibility of 7th International Strategic Management Conference doi: /j.sbspro

2 1476 Ramazan Uygun and Emel Altın / Procedia Social and Behavioral Sciences 24 (2011) development of the theory and practice of strategic management. Such major topics as strategic resource allocation; organization structure; leadership; entrepreneurship and organizational purpose; methods and techniques for evaluating and understanding competitive, technological, social, and political environments; planning processes; and strategic decision processes are included in the journal [19]. Besides, research question, both data collection methods and dependent variable structure determine data analysis methods. Combining the specific methodology rules (criteria) on each dimension creates our adaptive diamond model. The adaptive diamond model provides a graphical illustration of a methodology according to its rules (criteria) such that research question (or topic), data collection methods, data analysis methods and contribution to literature. Figure 1 shows the details of our adaptive diamond model. Selection of Research Topic Data Collection Process 2 Data Analysis Process Methodology Along Axes 1 Origin, Contribution to Literature FIGURE 1 An Adaptive Diamond Model About Process of a Scientific Research Design and Management The model [14] which looks like diamond within dark lines describes a good design and management process of a scientific research. In other words, each dimension of Diamond model influences other dimensions and the quality of a scientific research. Firstly, research question is the key indicator for research capability and originality. A research question directs data collection and analysis processes. A depth literature review is required to identify an original research question. Data collection process is one of the most important indicators that determine the validity and reliability of a scientific research. In other words, data structure and selection procedures are key reasons for limitation of a research. Researchers should also be careful towards the response bias in data collection process. In data analysis process, researchers should scale immeasurable values (i.e. intellectual capital) to make a measurement and should select true analysis method appropriate for data. For example, pooled longitudinal ordered logistic regression can be preferred ordinary least squares regression because the ordered logistic regression fits the key interests of the study. Finally, researchers make contributions to literature as well as that close the gap between theory and practice. Therefore, in Figure 1, research designs drawn within thin lines show that there are serious problems with research management. (1) In model 1, although data collection and data analysis process manage well, if the research question can t be determined clearly or research has little implications to literature, then the efficacy of the research is likely to be lower. (2) Otherwise, in model 2, although the research question is identified clearly or research has strong implications to literature, if data collection and data analysis process can t manage well, then being scientific of the research is likely to be lower. The article proceeds in the following manner. First, we briefly review the literature regarding the Strategic management research. Second, we present our findings about content analysis of Strategic Management Journal and compare findings of Ketchen et.al. [9] who made his analysis in the timeframe and our content analysis results in timeframes to determine trends. Finally, in conclusion part, we mention the general methodological change (or trends) in Strategic Management Research.

3 Ramazan Uygun and Emel Altın / Procedia Social and Behavioral Sciences 24 (2011) Literature review Strategic management is a fairly young field, so major changes in the methodologies have been seen. Molina-Azorin [12] examines research design of SMJ from 1980 to First he separates all articles whether empirical or not, then separates all empirical papers in terms of qualitative, quantitative or mixed method approach. In Lohrke s [10] book review on Research Methodology in Strategy and Management [Volume 3], Lohrke [10] emphasizes that book focuses on critical measurement issues exist in either a particular content area or the field in general for firm s environment, strategy, leadership and structure, and long-term performance. On the other hand Short et. al. [17] offer several recommendations for representing sampling issues related to firm performance in terms of representativeness, sample size, type of sample. Bergh and Fairbank [2] conduct a content analysis of change score studies appearing in the Strategic Management Journal from 1985 through 1999 to assess whether strategy researchers have recognized the special assumptions underlying predominant methodological premises of change. They identify that how is change measured and tested? They find that most strategy researchers do not incorporate the critical requirements associated with change. Besides, Boyd et al [4] conduct a content analysis of empirical strategic management articles published in leading journals for the period of to investigate measurement problems. They found that few studies discuss reliability and validity issues, and empirical research in the field commonly relies on single-indicator measures. Additionally, studies rarely address the problems of attenuation due to measurement error. In another study, Boyd et al [5] illustrate consequences of measurement errors and focus on construct measurement. They find that research with errors can lead future research in the wrong direction and making them less valuable. Shook et al [16] focus on data analysis and remind of existed more specialized techniques for examining longitudinal data, discrete events and causal structure besides linear methods. In strategic management research literature some articles focus on commonly used statistical data analysis techniques like cluster analysis [8], spatial methods [6] and Strategic Equivalent Models whose main goal is to determine how well the hypothesized model fits the observed data [7] and to determine the level of relationship between the variables [15]. Miller and Tsang [11] guide testing theories which based on empirical data whether falsification or verification in strategic management field. Phillips et. al. [13] explore the practical implications of applying critical discourse analysis in strategic management research. Discourse analysis is important because it not only involves practices of data collection and analysis, but also a set of meta-theoretical and theoretical assumptions and a body of research claims and studies. Bowen and Wiersema [3] draw attention to limits of cross sectional data analysis because of parameter variability across firms over time. They offer an alternative methodology such as indexing data samples with time, application of pooled data analysis and give greater attention to heteroscedasticity to overcome these issues. 3. Methods Our research design consists of 137 research articles within timeframe in Strategic Management Journal. In our content analysis, we first examined abstract, keywords and introduction to determine research topics, then examined methodology part to have an idea data collection and data analysis process. We explore the sources of data, data structure and analysis methods. From discussion part, we determine most frequently cited literature. We separate articles whether they are empirical or not. In fact SMJ is the main discipline-specific outlet for strategy and it emphasizes empirical work. 124 articles out of 137 are empirical articles. Then we divided empirical studies in quantitative, qualitative, and eclectic methods. Finally, we also read the results, discussion, and conclusion sections. Finally we compare our findings with Ketchen et.al. [9] who analyzed Strategic Management Journal for the period We used Excel to categorize methodology dimensions such as research topics, data collection process, data analysis process and contribution to literature. 4. Analysis Strategic management literature encompasses a large number of subjects and topics. Therefore it appears to be fragmented and lacking a cohesive identity. When we have examined the subjects in Strategic Management Journal for the period , we clearly see that topics about performance have been the most popular research subjects. Organizational theory and behaviour studies have frequently discussed after performance-related topics. Competitive Advantage and Value/Knowledge Creation have followed the subjects about organizational theory and behaviour studies. As we see in Table 1, the subjects are eclectic. In other words, they might cover more than one topic such as organizational learning and firm performance.

4 1478 Ramazan Uygun and Emel Altın / Procedia Social and Behavioral Sciences 24 (2011) Making contribution to literature shows parallel trends within research topics. Researchers who contribute to knowledge, network, Resource Based View, upper echelon theory and institutional theory literature have increased in number. Table 1 Examples from Frequently Discussed Subjects in Strategic Management Journal Between Organizational Learning and Firm Performance Interdependency and Its Effects On Firm and Industry Performance Strategic Consistency in Competitive Behaviour Strategies For Online Communities Resource Based View -Managers as a Source of Value Creation Product Market Strategy, Marketing Capabilities and Firm Performance Strategic Groups Testing Management and Organization Theory Governance Mode Choice, Implementation of Strategy and Performance Evolution Models of Competition and Adaptation to Environmental Change Causation in Strategic Research Value Creation in Alliances and Advancing Organizational Learning Managers as a Source of Value Creation Top Management Characteristics and Firm Performance Effects of Procedural Justice and Informational Justice on Value Creation On the other side, while nearly three quarters of the published articles were empirical for the period ; ninety percentages of 137 articles were empirical for the period We have still observed a growth in the use of empirical tools in SMJ. We start with data collection methods and sources to our examination. For three years period ( ), archival sources were dominant as well as for three years period. But there were a number of studies that used a combination of survey and archival data during the period , in the last three years, 15 % of articles that used a combination of survey and archival data. There are many papers that have still used common database COMPUSTAT and a very broad range of archival sources for these empirical articles such as firms annual reports, industry trade publications, newspapers and customers reports. Nature of data has also changed considerably over time. For the period , %86 of the articles used cross sectional data through survey, and when we analyze the period , articles data structure has changed significantly. %71 of the articles used longitudinal or panel data through archival sources and databases, Researchers have also collected data through field observations, interview, survey and online sources together in a model for identifying different type of variables (i.e. dependent or independent variable). Table 2. Data sources of articles for the period Data Sources Number Survey 36 Interview 26 Observation 19 Archival 43 Online Sources 10 Databases 62 There are approximately 13% of articles used financial, patent and strategic and managerial data for the period There are some obstacles to test strategic and managerial data; because the mechanisms may not be directly observable and their effects are contingent [11]. In data analysis, for the period , Regression and ANOVA became the dominant type of analysis, used in 66% of studies. The use of structural modelling grew substantially during this period as well, with its relative use growing by a factor of approximately five. Network tools remained a niche application and were used in only a minor proportion of studies. When we examine the period , Regression and ANOVA are still dominant type of analysis used in %84 of studies. Event history analysis (%13) has become popular methodology because of the changing phase of data structure (i.e. longitudinal data). The purpose of event history analysis is to explain why certain individuals are at a higher risk of experiencing the event(s) of interest than others. This can be

5 Ramazan Uygun and Emel Altın / Procedia Social and Behavioral Sciences 24 (2011) accomplished by using special types of methods which, depending on the field in which they are applied, are called failure-time models, life-time models, survival models, transition-rate models, response time models, event history models, duration models, or hazard models [18]. In SMJ, the most common method is hazard model as a regression model in which the risk of experiencing an event at a certain time point is predicted with a set of covariates. Two special features distinguish hazard models from other types of regression models. The first is that they make it possible to deal with censored observations, which contain only partial information on the timing of the event of interest. Another special feature is that covariates may change their value during the observation period. The possibility of including such time varying covariates makes it possible to perform a truly dynamic analysis. [18] The frequency of appearance of censored data is %3 in SMJ. Table 3. Research designs in strategic management journal Research Designs Case Studies Event Study Content Analysis Scale Experiment Simulation Number In empirical research in SMJ, different methods focus on different aspects of topics to understand the phenomenon of interest. In SMJ, research typically employs quantitative methods and there are few articles associated with qualitative modes of analysis. As most popular quantitative methods, regression analysis is used for relations to test direct effects and lower-level (two-way or three-way) curvilinear effects, rather than more complex contingent relations. Moreover, hierarchical linear modelling allows coefficients to vary contingent upon moderating and mediating effects at other levels of analysis. [11] For models with complex and dynamic conjunctions, computer simulation modelling (% 2) offers a means to transition from theoretical arguments to empirical testing. 5. Conclusion Research methodology in strategic management discussed above. As aggregation in the organizational studies, longitudinal methods such as event study analysis have become popular. Parameter variability across firms over time increases limits of cross sectional data analysis. An alternative methodology such as indexing data samples with time, application of pooled data analysis and give greater attention to heteroscedasticity may help researchers to overcome these issues. Therefore, researchers tend towards database and archival sources to collect data. To overcome obstacles to test strategic and managerial issues as highly disputed key research topics in strategic management area, experiment and simulation research designs are more likely to be preferred rather than surveys through scales. From the period to the period , image of time frames of data, data structure and analysis methods have changed dramatically. For the period , cross sectional time frame is used in 66 % of articles. Surveys are also used in %30 of articles. Besides, structural equation modelling/path analysis is used in 14% of articles. When it comes to the period , while using surveys as a instrument decreases 20% in articles of SMJ, event history methodology has increased %12 in articles of SMJ. In light of methodological development efforts in strategy and management areas, experiment and simulation designs may be most commonly used to overcome measurement issues in these subjects. 6. References [1] Aguinis H, Pierce CA, Bosco FA, Muslin IS. First decade of organizational research methods: trends in design, measurement, and data-analysis topic. Organizational Research Methods 2009;12(1): [2] Bergh DD, Fairbank JF. Measuring and testing change in the strategic management research. Strategic Management Journal 2002;23: ,p.363.

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